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Financial ABV Exam
Accredited in Business Valuation (ABV) (Page 9 )

Updated On: 12-Jan-2026
Page 9 of 70
PDF with 344 Questions

The analyst used to quantify the value of intangible assets. The analyst estimated the current cost required for the company to recreate its current level of customer awareness, brand recognition and consumer loyalty.

  1. Asset accumulation method
  2. Income approach
  3. Recreation cost method
  4. Valuing intangibles method

Answer(s): C



Because of the advanced features (protected by the several patents), Seller management estimates that:

  1. Seller sells more widgets than it otherwise would
  2. Seller has a greater market share than it otherwise would
  3. Seller's average selling price per unit is higher than its competitors' prices
  4. Seller has short-term supply contract supply contract with the key supplier

Answer(s): A,B,C



Analysts should consider each of the following measure when estimating the remaining useful life of intangible asset EXCEPT:

  1. Remaining legal (or legal protection) life (e.g., remaining term of trademark protection)
  2. Remaining contractual life (e.g., remaining term on a lease)
  3. Remaining copyrighted life (e.g., time period for which copyrights are sold)
  4. Remaining technological life (e.g., period until the current technology becomes obsolete, for patents, proprietary processes, etc.)

Answer(s): C



An intangible's deficiencies are considered curable when the prospective economic benefit of enhancing or modifying it exceeds the current cost (in terms of material, labor, and time) to change it. An intangible's deficiencies are considered incurable when:

  1. The current costs of enhancing or modifying it (in terms of material, labor and time) can not exceed the expected future economic benefits of improving it
  2. The current costs of enhancing or modifying it (in terms of material, labor and time) exceed the expected future economic benefits of improving it
  3. Cost encompasses all of the deficiencies
  4. Reproduction cost exceeds the actual production cost

Answer(s): B



The cost approach provides a systematic framework for estimating the value of an intangible asset based on the economic principle of:

  1. Substitution
  2. Competition
  3. Double counting
  4. Asset-based approach

Answer(s): A



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